Opinion: GOP tax plan bringing economic opportunity

Our national unemployment rate currently sits at 3.8 percent, which is an astonishingly low number given the events of the past dozen years. From the Great Recession to a regulatory state and federal tax structure seemingly equipped to stop growth, we saw unemployment numbers as high as 10 percent in recent years.

Thankfully, President Donald Trump made clear that tax and regulatory reform were key policy goals for his administration, and Congress has been able to take significant steps forward. More than a million jobs have been created since the passage of the Tax Cuts and Jobs Act, and we are seeing more and more optimism among business owners across the country.

As President Ronald Reagan said, a rising tide lifts all boats, and that is proving to be true in communities that have historically had significantly higher unemployment rates. In 1963, black unemployment sat at 13 percent, and over the course of the next 55 years stayed twice as high as the rest of the population.

I grew up in a poor, single-parent household in North Charleston, South Carolina, and saw firsthand how damaging this lack of economic opportunity can be for communities. My mom worked 60-hour weeks as a nurse’s aide to help keep a roof over our heads, and I am forever indebted to her for believing that her children could have a better life. Unfortunately, that hope has been lost in many neighborhoods, leaving behind generations that did not believe in their own potential, their own greatness.

Even under President Barack Obama, black unemployment reached as high as 14 percent – a number higher than the national unemployment rate during the Great Depression. Today, thanks to tax reform and positive economic growth policies from the White House and Congress, black unemployment sits at below 6 percent, and the gap between black unemployment and the national average is the smallest on record.

When you dig deeper into the numbers, black unemployment has fallen fast over the past year. In 2017, black unemployment was 7.6 percent versus 4.4 percent for all Americans, and in the past year, black unemployment fell 1.7 percent, while overall unemployment fell just 0.5 percent.

For cities like Cincinnati, the tax plan has resulted in an unemployment rate of 3.5 percent, a nearly all-time low.

The average weekly pay for Cincinnati workers shot up 2.7 percent in April alone, and 4.8 percent over the past year. That’s roughly an extra $2,000 for families making $40,000 a year.

Statewide in Ohio, you’re seeing the 12th straight month of lower unemployment – reaching its lowest number since 2001.

The great news is this has all occurred before a key initiative takes effect. I worked hard to ensure the creation of "Opportunity Zones" in the tax bill, which have the potential to transform distressed communities across Florida and the nation.

The provision uses tax incentives to bring long-term investment to parts of America that continue to struggle with high poverty and sluggish job growth. Investors are allowed to defer capital gains taxes by reinvesting those gains into a recognized "Opportunity Zone."

I joined Sen. Marco Rubio in Florida this past April to discuss how the zones could help low-income and underserved communities across the state, and the interest and excitement was absolutely amazing. These distressed communities have untold potential, and could power the next step in our nation’s economic growth as we seek to bring economic opportunity to all.

President Trump said in his Inaugural Address, "the forgotten men and women of our country are being forgotten no longer," and the policy results of the past 18 months are showing that to be true. Communities that feel left behind won’t be forgotten, and we are bringing opportunity to all Americans.

This opportunity is not only color blind, but it begins to bring equal incentives and hope for all Americans. This can genuinely help reverse the poverty and inequities that have held so many communities back for generations.

Tim Scott has served as the junior United States Senator for South Carolina since 2013.